Eur/usd Daily
The Week Before:You have to know the past so you can predict the future.
We have another blockbuster day
today as the US announces its Q3 GDP figures, which as ever are expected to be
a market mover.
Another US Downgrade?
Stocks wiped out their early gains to close lower on yesterday, which meant the Dow was hit by a three-day loss as rumours that ratings agency Fitch may come out with a statement on a U.S. downgrade which weighed on the major averages.
On the data front we another big day for numbers as the US will publish its 3rd quarter GDP figures at 12:30pm GMT. The figure is expected to have a major effect on the entire market as this it will show the pace at which the US economy is growing or decreasing.
What this means for Binary Traders
Ongoing worries about earnings and economic growth have again resurfaced. I think it’s going to stick with us for at least two weeks, as we get through earnings season, and as we head into the election and then really the fiscal cliff. In terms of the economic numbers they have been better than expected so we are getting there slowly though there still are lingering fears over the US economy.
In regards to GDP, the overall consensus is for a 1.9% growth in the third quarter of 2012. We saw a significant downward revision in the second quarter which has led many analysts to expect a third quarter of around 1.6 percent. There seems to be a lot of mixed views around 3rd Quarter GDP, whatever happens major movement is expected during the release today.
Assets that may be affected
USD foreign exchange crosses especially USD/JPY and USD/CHF and of course the US majors the DOW. We have seen a significant bullish rally over the last two weeks within these FX crosses. If the Q3 GDP figure is better than expected we can expect a continuation rally. On the other hand a worse than expected figure could see a significant sell-off across the entire market as this would signal the US economy is growing below expectations which subsequently means the global economy is slowing.
UK GDP
better than
UK GDP
better than expected boost economy
In the
U.K., third quarter GDP figures were released showing an increase of
1 percent from the previous quarter. This was the biggest quarterly gain since
the third quarter of 2007. Sterling rose sharply against the Dollar after the
data was released.
Away from
earnings news, Spanish newspaper Espacion reported on Thursday that
the Spanish government will formally ask the European Union (EU) for a bailout
package of up to 60 billion euros ($77.8 billion) to recapitalize its banking
sector, lower than the 100 billion euros offered. Though this is still speculation
we seem to be getting closer to a Spanish bailout.
What this
means for Binary Traders
We have
seen a significant amount of bearish activity within the entire market over
past two weeks. Many reports suggest that we may be due for some sort of correction,
though analysts don’t see a clear picture on how to address the Spanish
problem. The amount of bad loans in the Spanish banking system is huge. The GDP
figures show that the UK is on the right track to recovery which should be
taken as a positive sign for the entire global economy especially the European
Union. Spain’s bailout should rule European markets today along with very juicy
US Q3 GDP figures.
Assets
that may be affected
The GBP
and EUR foreign exchange crosses are key assets to keep an eye on today
especially EUR/USD and GBP/USD. We saw a significant rally within the pound
dollar cross due to the positive GDP data out of the UK, the momentum could be
set to continue if sentiment stays positive. Also the speculation over a
Spanish bailout could have a positive effect on the EUR/USD during Friday’s
session. Although, remember sentiment seems to changing constantly within the
markets which causing extreme volatility. If we see positive GDP data out of
the US we could be lined for a real bullish day however negative sentiment may
be very dangerous for Europe on a Friday.
For expert help in turning today’s news into a profitable trading plan, contact your personal account manager on
02030360919
Kasim Ijelu IB 2018574
Summary
Standard and Poor Down grade 5 Spanish Regions
Greece will miss debt cuts plus needs more time and money
What this means:
is Greece debt load would still be around 140% of yearly economic output by 2020 which is far above the 120% which is deemed sustainable
Technically speaking
1.29694 wkly Pivot Point is the 1st area to watch for As we
could see a bounce in the Beginning of the week but not expecting a major pull back pass the 1.29806..so
1st Target is still possibly weighing to the downside 1.2843
Please Trade responsible and Waite for clear patterns to form
No 1 Quote : If Price is King The Risk Management is the emperor
For expert help in turning today’s news into a profitable trading plan, contact your personal account manager on
02030360919
Kasim Ijelu IB 2018574
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